Good news is coming for America’s low-wage workers – Bob Bryan May 23 2016

minimum wage

REUTERS/Noah BergerProtesters calling for higher wages for fast-food workers stand outside a McDonald’s restaurant in Oakland, California, December 5, 2013.

While income inequality has been a structural issue for some time, there are signs that low-income Americans with jobs are now getting some relief.

In notes this past week, Bank of America Merril Lynch (BAML), JPMorgan, and the Federal Reserve Bank of Atlanta all laid out good news regarding the paychecks of low-wage workers.

In a note on the growth of subprime auto loans, BAML economists Emanuella Enenajor and Lisa Berlin showed reason for optimism based on wage-growth metrics from the Bureau of Labor Statistics’ employment report.

“Finally, the lower-income consumer, the demographic segment most likely comprising subprime borrowers, has been experiencing strong income growth,” the note read.

“Average wage growth of the bottom 10% and bottom 20% of employment categories has been accelerating at twice the pace of all other jobs.”

Screen Shot 2016 05 23 at 10.55.01 AMBank of America

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